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ARCHIVED - Could Spain limit food prices to what they were a year ago?
Politicians have proposed a price cap on basic grocery items in Spain
Political parties in Spain have called on the Spanish government this week to directly intervene in the food market to lower the price of basic groceries and to cap costs at the levels they were before the war in Ukraine.
Last year, Vice President Yolanda Díaz's proposal to place a ceiling on the price of staple grocery items was roundly rejected on the grounds that it unfairly hampered competition between supermarket chains, but the powers that be are understood to be considering the suggestion this time around. On the chance that they reject it, the government will instead look at implementing direct discounts on food products and heavily taxing large distribution companies to make up the cost.
One councillor backing the price cap believes it is “essential” that Spain’s leaders be “brave” and implement a similar ceiling to that imposed on gas and public transport “to remedy the current escalation of prices.” Those in favour have asked that the measures be put in place until at least the end of the year.
Ukraine is often referred to as ‘the bread basket of Europe’ and for good reason: Spain is reliant on the nation for a vast array of grains necessary for baked goods, animal feed and fertilisers and since Russia invaded and the supply chains have been interrupted, inflation on certain food items has exceeded 20%.
If the proposal is followed it would mean that the ceiling for food items would be the one set on February 20 last year. In addition, with a view to preventing small businesses from suffering situations of “financial stress”, direct aid would be made available to the sector, as was done with the hospitality industry during the pandemic.
The Minister of Social Rights, Ione Belarra, insists that this route would be the ”most effective and fair” way to guarantee food at affordable prices for families.
Image: Freepik
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